Nigerian Mortgage Calculator
Calculate mortgage payments at NHF (6%) or commercial bank rates (18–25%). Includes closing costs and rent vs buy analysis.
Extra Payments & Rate Scenarios
See how extra payments save interest and compare different mortgage rates
How much interest does an extra monthly payment save?
Professional Mortgage Simulator
Full amortization with rate changes, equity tracking, and affordability stress test
| Year | Principal | Interest | Balance | Equity |
|---|---|---|---|---|
| Year 1 | ₦112,967 | ₦3,590,981 | ₦19,887,033 | ₦7,112,967 |
| Year 2 | ₦135,065 | ₦3,568,882 | ₦19,751,968 | ₦9,408,032 |
| Year 3 | ₦161,487 | ₦3,542,461 | ₦19,590,481 | ₦11,902,319 |
| Year 4 | ₦193,076 | ₦3,510,871 | ₦19,397,405 | ₦14,614,819 |
| Year 5 | ₦230,846 | ₦3,473,102 | ₦19,166,559 | ₦17,566,643 |
| Year 6 | ₦276,003 | ₦3,427,945 | ₦18,890,556 | ₦20,781,302 |
| Year 7 | ₦329,994 | ₦3,373,953 | ₦18,560,562 | ₦24,285,045 |
| Year 8 | ₦394,547 | ₦3,309,400 | ₦18,166,015 | ₦28,107,240 |
| Year 9 | ₦471,728 | ₦3,232,220 | ₦17,694,287 | ₦32,280,829 |
| Year 10 | ₦564,006 | ₦3,139,941 | ₦17,130,281 | ₦36,842,844 |
| Year 11 | ₦674,336 | ₦3,029,611 | ₦16,455,945 | ₦41,835,030 |
| Year 12 | ₦806,249 | ₦2,897,699 | ₦15,649,696 | ₦47,304,557 |
| Year 13 | ₦963,965 | ₦2,739,982 | ₦14,685,731 | ₦53,304,863 |
| Year 14 | ₦1,152,535 | ₦2,551,413 | ₦13,533,196 | ₦59,896,645 |
| Year 15 | ₦1,377,991 | ₦2,325,956 | ₦12,155,205 | ₦67,149,023 |
| Year 16 | ₦1,647,551 | ₦2,056,396 | ₦10,507,653 | ₦75,140,913 |
| Year 17 | ₦1,969,842 | ₦1,734,105 | ₦8,537,811 | ₦83,962,641 |
| Year 18 | ₦2,355,179 | ₦1,348,768 | ₦6,182,631 | ₦93,717,856 |
| Year 19 | ₦2,815,895 | ₦888,052 | ₦3,366,736 | ₦104,525,791 |
| Year 20 | ₦3,366,736 | ₦337,212 | ₦0 | ₦116,523,929 |
How Nigerian Mortgages Work
Obtaining a mortgage in Nigeria is significantly more challenging than in many other countries. Two main pathways exist:
1. NHF Mortgage (Federal Mortgage Bank)
The National Housing Fund (NHF) offers mortgages at 6% interest — far below commercial rates. To qualify, you must:
- Have contributed to NHF for a minimum of 6 months
- Not previously benefited from an NHF loan
- Apply through a Primary Mortgage Bank (PMB) accredited by FMBN
- Maximum loan: ₦15M for NHF mortgages (as of 2026)
2. Commercial Bank Mortgages
Commercial banks offer mortgages at market rates, currently 18–25% p.a. This makes monthly payments substantially higher and total interest costs enormous. A ₦25M loan at 20% over 20 years costs approximately ₦57M in total repayments — ₦32M in interest alone.
Key Nigerian Mortgage Realities
- High upfront costs — Legal fees, agency fees, survey, consent fees often add 5–15% to the property price
- Annual rent culture — Lagos and Abuja landlords typically demand 1–2 years rent upfront, making renting surprisingly capital-intensive
- Documentation — Title deeds (Certificate of Occupancy), Governor's Consent, land registry all add complexity and cost
- Interest rates — Rate volatility means variable rate mortgages carry refinancing risk
Example: ₦25M Property in Lagos
Adaeze buys a ₦25M apartment
20% down payment, commercial bank at 20% p.a., 20-year term.
The total cost of this ₦25M property, including all costs, is approximately ₦99M over 20 years — nearly 4 times the purchase price.
NHF Comparison
If Adaeze used NHF at 6% for ₦15M (maximum NHF loan, self-financing the rest):
At 6%, the same ₦15M loan costs ₦10.8M in interest vs ₦54.4M at 20% — a saving of over ₦43M. NHF qualification is worth considerable effort for eligible properties.
Rent vs Buy in Nigeria
The rent vs buy decision in Nigeria has unique characteristics:
Why renting is common
- High mortgage rates (18–25%) make monthly mortgage payments much higher than equivalent rent
- Many Nigerians lack the documented income history required by banks
- Property documentation and title verification is complex and costly
- Flexible accommodation matches mobile professional lifestyles
Why buying makes sense long-term
- Property values in Lagos and Abuja have historically appreciated 8–15% annually
- Naira inflation erodes the real value of fixed mortgage payments over time
- Rent payments build no equity — all money is gone at end of tenancy
- Own property provides security and freedom from landlord pressure
Nigerian rent reality
Unlike most countries, Nigerian landlords demand 1–2 years rent upfront. A ₦120,000/month apartment costs ₦1.44M–₦2.88M on first day. This upfront cost is comparable to a mortgage deposit in some cases, but builds zero equity.